Dresser-Rand Group Earnings: Here’s Why Investors are Selling Shares Now

Dresser-Rand Group Inc. (NYSE:DRC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.27%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Dresser-Rand Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 38.71% to $0.43 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 15.81% to $766.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dresser-Rand Group Inc. reported adjusted EPS income of $0.43 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $735.23 million.

Quoting Management: Vincent R. Volpe Jr., President and Chief Executive Officer of Dresser-Rand, said, “Our first quarter 2013 financial results were generally in-line with our expectations, with good earnings and aftermarket bookings set against light new units bookings. Additionally, while net working capital increased at quarter end to approximately 13.5% of trailing twelve months sales, looking at scheduled commitments and anticipated receipts from clients, we continue to expect that the average for the year will be at or below 10% of 2013 sales as previously guided. ”

Key Stats (on next page)…

Revenue decreased 9.24% from $844.4 million in the previous quarter. EPS decreased 59.05% from $1.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.78 to a profit $0.73. For the current year, the average estimate has moved down from a profit of $3.66 to a profit of $3.36 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)